Senator Digs Deeper in Political Intelligence Probe After CMS Policy Leak

With "political intelligence" firms in his crosshairs, Sen. Chuck Grassley (R-Iowa), a senior member of the Senate Finance Committee, wrote to Acting CMS Administrator Marilyn Tavenner instructing her to send details pertaining to an unexpected policy decision that likely led to a large spike in health insurance stocks.

CMS reversed its initial plan to cut Medicare Advantage payments to private health insurance companies, choosing instead to raise the payments next year 3.3 percent. Washington investment analysis firm Heights Securities emailed clients about the decision about 15 minutes before the markets closed, during which some health insurance stocks such as Humana jumped as high as 6 percent. CMS did not publicly announce the decision until roughly 45 minutes after the investors were notified, sparking Sen. Grassley's concern that nonpublic information was leaked by the agency that benefited political intelligence firms and their clients over the general public.

In the letter, Sen. Grassley instructed Ms. Tavenner to send a timeline on the Medicare Advantage decision, as well as the names and roles of all persons involved or privy to the decision before it was made public.

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